Newer Developments in the Japanese Cryptocurrency Market

Crypto-related businesses are
licensed in Japan by the Financial Services Agency (FSA). Japan, the leading market in cryptocurrency,
has newer developments concerning the blockchain and cryptocurrency markets.

Taro Aso, Deputy Prime Minister
of Japan, stated that regulators should come up with newer approaches to deal
with emerging technologies like the blockchain and cryptocurrencies.

Aso was the keynote speaker in
the FINSUM fintech conference which was held in Tokyo on September 05,
2019. Regulations are to be adopted to
keep up with emerging new technologies.

The financial authorities are to
respond to newer developments to prevent getting left behind. He further stated, “New approaches are
important without relying on conventional frameworks and approaches.”

Yoshitaka Kitao, CEO of Japanese
Financial Services, when speaking at the FINSUM conference stated that he hopes
to get regulatory approval for a new self-regulatory body during the next
year. The new organization is focusing
on creating standards and practices appropriate for security token offerings.

The group will file a
self-regulation proposal by the end of 2019, and it will eventually aim for its
certification in April 2020.

Ripple is currently planning to
invest $50 million in MoneyGram, payments service to provide for a meaningful
SBI business.

LINE, which is a subsidiary of
the Japanese messaging service, LVC has obtained a license to operate as a
cryptocurrency exchange to function as a cryptocurrency exchange from the
FSA. This exchange will purportedly
support cryptocurrencies like Bitcoin (BTC), Ether (ETH), XRP, Litecoin (LTC)
and Bitcoin Cash (BCH). LINE previously
launched its Bitbox exchange in Singapore during 2018; however, as it did not
have the required licenses, it was not able to provide its services in Japan
and the United States.

Yuriko Koike, Governor of Tokyo
prefecture, recently declared that the city is geared to start a
proof-of-concept (POC) for its municipal digital currency which will be issued
by March of 2020. The PoC will happen in two locations in the city and will
include the awarding of the digital currency to the residents who have made
social contributions in environmental conservation eventually eradicating
poverty. The name for the currency is not yet declared.

In a recent activity report from
FSA, the Fintech Innovation Hub has recently released an activity report in
which the regulator stated that the Bitcoin’s Lightening Network is developing
at a faster pace. The network speeds up
the transactions on the two-layer protocol, which is considered to be the
solution for the Bitcoin Network’s Scalability problem.

About The Author

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche.